Ajax Engineering IPO

• Type: Book Built Issue (Offer for Sale)  
• Issue Size: ₹1,269.35 Crores  
• Offer for Sale: 2.02 Crore shares
• Issue Dates:
  • Open: February 10, 2025  
  • Close: February 12, 2025  
• Allotment Date : February 13, 2025  
• Listing Date : February 17, 2025  
• Price Band: ₹599 – ₹629 per share  
• Lot Size: Minimum 23 shares  
• Minimum Investment (Retail): ₹14,467  
• Minimum Investment (sNII): ₹2,02,538 (14 lots)  
• Minimum Investment (bNII): ₹10,12,690 (70 lots)  
• Lead Managers: ICICI Securities, Citigroup Global Markets India, JM Financial, Nuvama Wealth Management, SBI Capital Markets  
• Registrar: Link Intime India Private Ltd.  

Timeline

IPO Open Date:	February 10, 2025
IPO Close Date:	February 12, 2025
Basis of Allotment:	February 13, 2025
Refunds:	February 14, 2025
Credit to Demat Account:	February 14, 2025
IPO Listing Date:	February 17, 2025

About Ajax Engineering IPO

• Core Business: Ajax Engineering is a leading manufacturer of concrete equipment in India.
• Market Position:
  • A strong market leader in the Indian SLCM market, holding a significant market share.
  • Extensive distribution network across India and an increasing presence in international markets.
• Future Outlook:
  • The company is poised to benefit from the continued growth of the Indian construction sector.
  • Expansion into new product lines and geographic markets presents growth opportunities.
  • Focus on innovation and technological advancements, such as automation and digitalization, to enhance efficiency and product offerings.

Objective

Key Objectives of the Ajax Engineering IPO (Offer for Sale)

• Provide Liquidity to Existing Shareholders: The primary objective of this IPO is to provide an exit route for existing shareholders, including promoters and investors, to monetize their investments in the company.
• Enhance Brand Visibility and Market Recognition: Listing on stock exchanges will enhance the company’s brand visibility and market recognition, which can benefit long-term growth prospects.
• Improved Corporate Governance: Listing on stock exchanges will subject the company to higher levels of corporate governance and transparency, which can benefit all stakeholders.

Ajax Engineering : Weighing the Pros and Cons

POSITIVE

• Government Focus on Infrastructure: The Indian government’s strong focus on infrastructure development provides a favorable backdrop for the company’s growth.
• Growth Potential: The company operates in a sector with significant growth potential, driven by increasing government spending on infrastructure projects.
• Diversification: The company’s involvement in various segments like road construction, irrigation, and building construction can mitigate some of the risks associated with dependence on a single segment.

Negatives

• Competition: The infrastructure sector is highly competitive with established players and new entrants.
• Execution Risks: Project execution can be subject to delays, cost overruns, and unforeseen challenges, impacting profitability.
• Government Regulations: Changes in government policies, regulations, and budgetary allocations can significantly impact the company’s operations and profitability.
• Economic Slowdown: An economic slowdown can impact government spending on infrastructure projects, adversely affecting the company’s revenue and profitability.
• Raw Material Costs: Fluctuations in the prices of raw materials like cement, steel, and aggregates can impact project margins.

So,How Does Ajax Engineering IPO Fare in Terms of Financials ?

Ajax Engineering – Financial Data (Restated Consolidated)

Period Ended	30 Sep 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	1,348.76	1,236.14	966.73	735.31
Revenue	794.16	1,780.07	1,172.57	771.85
Profit After Tax	101.02	225.15	135.9	66.21
Net Worth	995.84	917.96	713.8	578.27
Reserves and Surplus	984.4	906.52	702.36	575.41
Total Borrowing		6.23	10.14	7.16
Amount in ₹ Crore

Key Observations:

Let’s review the provided table of financial data for Ajax Engineering.

• Strong Revenue Growth:
  • Revenue has exhibited a significant upward trajectory over the past three years.
  • A notable jump occurred between FY23 and FY24, suggesting robust demand for the company’s products.
• Profitability Expansion:
  • Profit After Tax (PAT) has consistently increased, indicating improved operational efficiency and potentially higher margins.
• Healthy Asset Growth:
  • Total assets have grown steadily, likely driven by investments in expansion, research & development, or acquisitions.
• Strong Balance Sheet:
  • Net Worth has increased significantly, reflecting the company’s profitability and retained earnings.
  • Reserves and Surplus have also grown substantially, providing a strong financial cushion.
• Low Debt:
  • Total borrowing remains relatively low, suggesting a conservative approach to financing and a healthy financial position.

Ajax Engineering IPO Valuation :

KPI	Values
ROE:	24.53%
ROCE:	32.82%
EBITDA Margin:	15.82%
PAT Margin:	12.65%
Debt to equity ratio:	0.01
Earning Per Share (EPS):	₹19.68 (Basic)
Price/Earning P/E Ratio:	N/A
Return on Net Worth (RoNW):	19.39%
Net Asset Value (NAV):	₹80.24

SWOT Analysis of Ajax Engineering IPO

Strengths

• Market Leader: Strong market position in the Indian Self-Loading Concrete Mixers (SLCMs) market with a significant market share.
• Diversified Product Portfolio: Offers a range of concrete equipment beyond SLCMs, including batching plants, transit mixers, and concrete pumps, providing revenue diversification.
• Experienced Management Team: Possesses a strong and experienced management team with a proven track record in the industry.
• Strong Distribution Network: Extensive dealer network across India, providing access to a wide customer base.
• Growing Construction Sector: Benefits from the growing Indian construction sector, driven by government infrastructure projects and private sector investments.

Weaknesses

• Cyclical Nature of the Industry: The construction sector is cyclical, and demand for construction equipment can fluctuate with economic downturns or changes in government spending.
• Raw Material Price Volatility: Fluctuations in the prices of key raw materials like steel and cement can impact production costs and profitability.
• Competition: Faces competition from both domestic and international players in the construction equipment market.
• Dependence on a Few Key Customers: Reliance on a few large customers could expose the company to significant risks.
• Seasonality in Demand: Demand for construction equipment can be seasonal, impacting revenue and profitability.

Opportunities

• Expanding Product Portfolio: Diversifying product offerings to cater to a wider range of customer needs, such as expanding into new segments like construction machinery or after-sales services.
• Geographic Expansion: Expanding operations into new domestic and international markets to tap into untapped growth potential.
• Technological Advancements: Adopting new technologies like automation, robotics, and digitalization to improve efficiency, reduce costs, and enhance product offerings.
• Focus on Sustainability: Emphasizing sustainable manufacturing practices and developing environmentally friendly products.

Threats

• Economic Slowdown: An economic slowdown can significantly impact demand for construction equipment.
• Government Regulations: Changes in government policies, regulations, and environmental norms can impact the company’s operations.
• Competition from Global Players: Increased competition from multinational companies with advanced technologies and global reach.
• Technological Disruptions: Rapid technological advancements in the construction industry could disrupt existing business models.

Competitive Analysis: Arisinfra Solutions IPO

Ajax Engineering faces competition from both domestic and international players in the construction equipment market. Some of the key competitors include:

• Action Construction Equipment: A major player in the Indian construction equipment market, offering a wide range of products including concrete mixers, earthmoving equipment, and material handling equipment.
• Escorts Kubota: A well-established player in the agricultural and construction equipment sector, offering a range of construction and farm machinery.
• BEML: A government-owned company with a strong presence in the defense and rail sectors, also manufacturing construction equipment.
• JCB: A global leader in construction equipment, offering a wide range of products and a strong global presence.
• Volvo Construction Equipment: Another global player with a strong presence in the Indian market, offering a wide range of construction equipment.

Ajax Engineering IPO GMP

• Grey market premium as on 12-02-2025 = ₹ 7/ Share

Disclaimer:

• IPO Grey Market Premium (Ajax Engineering IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Ajax Engineering IPO

🔴 Live Subscription Status 🔴

12/02/2025 03:00 PM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)	40,20,300	0.26	0.33	11.58
Non Institutional Investors(NIIs)	30,15,225	0.28	0.61	5.62
Retail Individual Investors(RIIs)	70,35,525	0.29	0.52	1.02
Employees	78,947	0.54	1.19	2.37
Total	1,41,49,997	0.28	0.49	5.01

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